NEUTRAUBLING (dpa-AFX) - Mechanical engineering firm Krones started the year with a decline in revenue and earnings, weighed down by negative currency effects. However, backed by a strong order book, the Group confirmed its full-year guidance. The company stated that its markets are generally less sensitive to cyclical fluctuations and that customer investment appetite remains robust, according to a statement from the manufacturer of bottling and packaging equipment.

Shares in the MDax-listed company recently edged up 1.3 percent to 129.60 euros. Since the beginning of the year, the stock has lost around four percent of its value, though it has recovered significantly from its March low of 109.20 euros.

Constantin Hesse of Jefferies noted that Krones delivered a decent start to the year in a challenging environment, highlighting the order intake as a positive surprise.

In the first quarter, order intake rose by 5.3 percent year-on-year to approximately 1.51 billion euros. New business also improved compared to the previous quarter. The order backlog increased by 3.2 percent compared to the end of 2025, reaching around 4.3 billion euros.

Meanwhile, revenue fell by 2.2 percent year-on-year to approximately 1.38 billion euros, as the Neutraubling-based manufacturer announced on Friday. This performance was in line with analyst expectations. Adjusted for currency fluctuations, revenue grew by 1.4 percent.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) dipped slightly by 0.3 percent to 148.9 million euros, coming in slightly ahead of industry experts' forecasts. The corresponding operating margin improved marginally from 10.6 to 10.8 percent. Bottom-line profit attributable to shareholders amounted to 68.5 million euros, a 9.5 percent decrease year-on-year, primarily due to higher depreciation charges.

For the current year, management continues to expect currency-adjusted revenue growth of three to five percent. The operating margin (EBITDA) is projected to improve to between 10.7 and 11.1 percent. In 2025, the company recorded revenue of 5.66 billion euros with an operating margin of 10.6 percent.

Krones is also preparing for a leadership transition. In June, Chief Sales Officer Thomas Ricker will take the helm from CEO Christoph Klenk, as the company previously announced in March./err/jha/men